The document provides advice on navigating volatile market conditions, emphasizing the importance of diversification, maintaining a long-term perspective, and not abandoning one's investment plan. It highlights data showing that markets have historically recovered from downturns and notes opportunities currently available in international markets and other asset classes. The overall message is that staying invested and working with a financial advisor can help investors weather periods of market turbulence.
The document discusses various types of investments including stocks, bonds, cash, and mutual funds. It provides details on the sources of profit for each type, how they work, their level of risk, and long-term returns. The document also covers concepts like asset allocation, diversification, inflation, and the importance of starting to invest early.
This document provides an overview of the economic downturn in 2008 and perspectives on investing going forward. It discusses events like bank failures, government interventions, and falling stock markets. While markets will experience ups and downs, historically most markets show long-term gains. The document recommends that investors don't overreact, think long term, assess their situation and goals, and look for opportunities once the economy recovers.
This document provides an analysis and updated expectations for long-term capital market returns. It estimates that U.S. stocks will provide a total return of 6-8% over the long-term and bonds will return 3-4%. These estimates are based on reasonable assumptions about inflation, dividend income, dividend growth, and valuation shifts. The document examines historical returns and factors to derive its projections, which are meant to provide a guide for long-term financial planning.
The document provides an economic and market review for Q1 2009. It summarizes key economic indicators such as GDP, inflation, unemployment and housing prices. It also reviews the performance of major asset classes and indexes in 2008. Nearly all asset classes lost money last year except investment-grade fixed income. The S&P 500 fell over 30% while small cap and international markets declined over 35%.
The document provides an overview of the economic crisis that began in late 2007 and discusses recommendations for investors. It notes that the collapse of subprime lending and the housing bubble led to widespread credit problems and market declines. While the situation remains challenging, following principles like diversification and long-term perspective can help investors navigate volatile markets and find opportunities for future growth as the economy recovers.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
The Federal Reserve announced "Operation Twist" to lower longer-term interest rates by selling short-term Treasuries and buying long-term ones. While interest rates declined as intended, stocks fell over 6% due to fears of a Greek default, global financial crisis, slowing growth in China, and declining copper prices indicating weaker global growth. Dividends have provided over a third of the S&P 500's total return over 80 years and can enhance returns and provide stability, especially in a low interest rate environment.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
The document discusses various types of investments including stocks, bonds, cash, and mutual funds. It provides details on the sources of profit for each type, how they work, their level of risk, and long-term returns. The document also covers concepts like asset allocation, diversification, inflation, and the importance of starting to invest early.
This document provides an overview of the economic downturn in 2008 and perspectives on investing going forward. It discusses events like bank failures, government interventions, and falling stock markets. While markets will experience ups and downs, historically most markets show long-term gains. The document recommends that investors don't overreact, think long term, assess their situation and goals, and look for opportunities once the economy recovers.
This document provides an analysis and updated expectations for long-term capital market returns. It estimates that U.S. stocks will provide a total return of 6-8% over the long-term and bonds will return 3-4%. These estimates are based on reasonable assumptions about inflation, dividend income, dividend growth, and valuation shifts. The document examines historical returns and factors to derive its projections, which are meant to provide a guide for long-term financial planning.
The document provides an economic and market review for Q1 2009. It summarizes key economic indicators such as GDP, inflation, unemployment and housing prices. It also reviews the performance of major asset classes and indexes in 2008. Nearly all asset classes lost money last year except investment-grade fixed income. The S&P 500 fell over 30% while small cap and international markets declined over 35%.
The document provides an overview of the economic crisis that began in late 2007 and discusses recommendations for investors. It notes that the collapse of subprime lending and the housing bubble led to widespread credit problems and market declines. While the situation remains challenging, following principles like diversification and long-term perspective can help investors navigate volatile markets and find opportunities for future growth as the economy recovers.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
The Federal Reserve announced "Operation Twist" to lower longer-term interest rates by selling short-term Treasuries and buying long-term ones. While interest rates declined as intended, stocks fell over 6% due to fears of a Greek default, global financial crisis, slowing growth in China, and declining copper prices indicating weaker global growth. Dividends have provided over a third of the S&P 500's total return over 80 years and can enhance returns and provide stability, especially in a low interest rate environment.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
2013’s Top 10 Lessons for Investors from LPL Financial ResearchJP Marketing | NE
Each year that passes contains some wisdom for investors, but along with that wisdom can be some folly. 2013 was a year that bestowed an abundance of each on investors.
HIGHLIGHTS: The top 10 lessons of 2013 for investors need to be put into two categories: those that investors can take to heart as sound wisdom for the year to come, and those they should try to forget as they prepare for 2014.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
Elevation Wealth Management's quarterly review of the investment, financial, and economic landscape as of September 30, 2013. Key take-aways and useful insights for average and sophisticated investors alike.
The stock market posted modest gains in the first quarter of 2014, despite severe winter weather slowing U.S. economic growth. The S&P 500 rose 1.8% for its fifth consecutive quarterly gain, extending the bull market. Utilities and healthcare outperformed due to falling interest rates and prospects for increased demand. Commodities rebounded after a difficult 2013. Bonds matched stock returns as yields fell. The economic outlook remains positive, but disappointing growth posed risks for stocks in the near term.
Juris wealth the corona virus, market declines and volatilityTimothy Corriero
This document discusses market reactions to past epidemics and crises. It provides charts showing the S&P 500 index from 1926-2019 with bear and bull markets labeled. Another chart shows the cumulative returns of a balanced portfolio following past crises like stock market crashes, recessions, and health epidemics. The document emphasizes that reacting to short-term market volatility can hurt long-term performance and that investors should focus on diversifying and maintaining a disciplined investment plan.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
Neither bulls nor bears in 2011, LPL Financial Research expects the economy and the markets will be range-bound in 2011. Bound by economic and fiscal forces that will restrain and not reverse growth, we believe the markets will provide modest single-digit rates of return.
In 2011, business leaders, policymakers, and investors will play important roles in shaping the investing environment.
What are realistic expectations for long-term capital market returns, and how are they forecast? Check out this month's Investment Insights for a historical look.
The document summarizes LPL Financial Research's economic and market outlook for 2011. They expect the economy and markets to be range-bound with GDP growth between 2-4% and modest single-digit returns for stocks. Bonds may see below average but positive returns of 0-5% while volatility remains elevated. Foreign policy issues may also impact markets.
- In August, Wall Street experienced its worst liquidity crunch in nearly ten years due to accelerating mortgage defaults and fears of a recession. A sharp rise in mortgage defaults undermined mortgage-backed securities and highly leveraged funds.
- The Dow lost 796 points (nearly 6%) in five trading days through August 15th. The S&P 500 and other indexes also declined sharply.
- On August 17th, the Federal Reserve unexpectedly cut interest rates by 0.5% to help alleviate risks, buoying markets for the rest of the month.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
The quarterly market review summarizes market performance in the first quarter of 2013. Global markets posted modest gains, with U.S. stocks outperforming international markets. The S&P 500 and Dow Jones Industrial Average reached new all-time highs. Ten-year returns remain positive across most asset classes and geographic regions, reinforcing the benefits of diversification and long-term investing.
This document provides a market commentary and overview of key steps to financial success. It discusses that asset allocation, investment selection, and rebalancing are important for financial success. It also notes that diversification is important because leaders in different asset classes rotate over time. While diversification struggled in 2014, diversification remains important because different asset classes outperform in different years.
The document provides an overview of recent economic developments and investment sentiment from various regions. It notes that while the US and China continue to debate currency policies, a G20 meeting did not provide clarity on the issue. Germany is outperforming other European countries as indicators show growth, while problems are mounting in Ireland. In the US, government programs spent only half their funds and losses are expected to be small, while housing markets are stabilizing. China is investing in Europe and emerging markets are growing quickly, raising interest rates to cool their economies. The author's investment sentiment remains neutral but slightly positive.
The document provides disclosures and sources for several exhibits. Exhibit 1 discloses trading data sources for world equity trading volumes. Exhibit 2 describes the mutual fund sample and methodology used to determine "winner" funds that outperformed benchmarks. Exhibit 3 explains how the analysis was conducted to determine the percentage of top-ranked funds that maintained their ranking in subsequent years. The source for Exhibits 2 and 3 is also provided.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
1) Asset allocation involves dividing investments among different asset classes like stocks, bonds, and cash equivalents to gain exposure to rotating market leaders and help reduce volatility.
2) Maintaining a balanced mix of assets tailored to an individual's goals, time horizon, and risk tolerance can potentially increase returns compared to holding single assets.
3) Asset allocation strategies need periodic rebalancing to maintain the intended risk level as market conditions and individual circumstances change over time.
The document provides an overview of market volatility and downturns. It discusses how declines are normal aspects of the market cycle and outlines historical data on the average length and frequency of different types of declines. It also notes that expansions have typically lasted longer than recessions throughout history.
Active managers have generally not outperformed the market in either bull or bear markets. During the 2008 financial crisis, actively managed funds underperformed the S&P 500 index by an average of 1.67% on average. Studies from 2008-2012 also found that the majority of active managers failed to outperform their benchmarks across various market categories. While markets have historically delivered positive returns, it is typically a small group of top-performing stocks that drive those returns, making it difficult for managers to consistently pick winners. Diversification can help reduce risk and volatility compared to investing only in stocks, as seen during the 1973-1976 and 2007-2011 periods where a diversified portfolio lost less than a pure stock portfolio.
The document provides an overview and analysis of financial markets in 2009. It discusses the economic turmoil affecting markets, outlines different types of market declines, and analyzes stock and bond returns over time. The document emphasizes maintaining realistic expectations, the benefits of long-term investing, and risks of trying to time the market.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
2013’s Top 10 Lessons for Investors from LPL Financial ResearchJP Marketing | NE
Each year that passes contains some wisdom for investors, but along with that wisdom can be some folly. 2013 was a year that bestowed an abundance of each on investors.
HIGHLIGHTS: The top 10 lessons of 2013 for investors need to be put into two categories: those that investors can take to heart as sound wisdom for the year to come, and those they should try to forget as they prepare for 2014.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
Elevation Wealth Management's quarterly review of the investment, financial, and economic landscape as of September 30, 2013. Key take-aways and useful insights for average and sophisticated investors alike.
The stock market posted modest gains in the first quarter of 2014, despite severe winter weather slowing U.S. economic growth. The S&P 500 rose 1.8% for its fifth consecutive quarterly gain, extending the bull market. Utilities and healthcare outperformed due to falling interest rates and prospects for increased demand. Commodities rebounded after a difficult 2013. Bonds matched stock returns as yields fell. The economic outlook remains positive, but disappointing growth posed risks for stocks in the near term.
Juris wealth the corona virus, market declines and volatilityTimothy Corriero
This document discusses market reactions to past epidemics and crises. It provides charts showing the S&P 500 index from 1926-2019 with bear and bull markets labeled. Another chart shows the cumulative returns of a balanced portfolio following past crises like stock market crashes, recessions, and health epidemics. The document emphasizes that reacting to short-term market volatility can hurt long-term performance and that investors should focus on diversifying and maintaining a disciplined investment plan.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
Neither bulls nor bears in 2011, LPL Financial Research expects the economy and the markets will be range-bound in 2011. Bound by economic and fiscal forces that will restrain and not reverse growth, we believe the markets will provide modest single-digit rates of return.
In 2011, business leaders, policymakers, and investors will play important roles in shaping the investing environment.
What are realistic expectations for long-term capital market returns, and how are they forecast? Check out this month's Investment Insights for a historical look.
The document summarizes LPL Financial Research's economic and market outlook for 2011. They expect the economy and markets to be range-bound with GDP growth between 2-4% and modest single-digit returns for stocks. Bonds may see below average but positive returns of 0-5% while volatility remains elevated. Foreign policy issues may also impact markets.
- In August, Wall Street experienced its worst liquidity crunch in nearly ten years due to accelerating mortgage defaults and fears of a recession. A sharp rise in mortgage defaults undermined mortgage-backed securities and highly leveraged funds.
- The Dow lost 796 points (nearly 6%) in five trading days through August 15th. The S&P 500 and other indexes also declined sharply.
- On August 17th, the Federal Reserve unexpectedly cut interest rates by 0.5% to help alleviate risks, buoying markets for the rest of the month.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
The quarterly market review summarizes market performance in the first quarter of 2013. Global markets posted modest gains, with U.S. stocks outperforming international markets. The S&P 500 and Dow Jones Industrial Average reached new all-time highs. Ten-year returns remain positive across most asset classes and geographic regions, reinforcing the benefits of diversification and long-term investing.
This document provides a market commentary and overview of key steps to financial success. It discusses that asset allocation, investment selection, and rebalancing are important for financial success. It also notes that diversification is important because leaders in different asset classes rotate over time. While diversification struggled in 2014, diversification remains important because different asset classes outperform in different years.
The document provides an overview of recent economic developments and investment sentiment from various regions. It notes that while the US and China continue to debate currency policies, a G20 meeting did not provide clarity on the issue. Germany is outperforming other European countries as indicators show growth, while problems are mounting in Ireland. In the US, government programs spent only half their funds and losses are expected to be small, while housing markets are stabilizing. China is investing in Europe and emerging markets are growing quickly, raising interest rates to cool their economies. The author's investment sentiment remains neutral but slightly positive.
The document provides disclosures and sources for several exhibits. Exhibit 1 discloses trading data sources for world equity trading volumes. Exhibit 2 describes the mutual fund sample and methodology used to determine "winner" funds that outperformed benchmarks. Exhibit 3 explains how the analysis was conducted to determine the percentage of top-ranked funds that maintained their ranking in subsequent years. The source for Exhibits 2 and 3 is also provided.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
1) Asset allocation involves dividing investments among different asset classes like stocks, bonds, and cash equivalents to gain exposure to rotating market leaders and help reduce volatility.
2) Maintaining a balanced mix of assets tailored to an individual's goals, time horizon, and risk tolerance can potentially increase returns compared to holding single assets.
3) Asset allocation strategies need periodic rebalancing to maintain the intended risk level as market conditions and individual circumstances change over time.
The document provides an overview of market volatility and downturns. It discusses how declines are normal aspects of the market cycle and outlines historical data on the average length and frequency of different types of declines. It also notes that expansions have typically lasted longer than recessions throughout history.
Active managers have generally not outperformed the market in either bull or bear markets. During the 2008 financial crisis, actively managed funds underperformed the S&P 500 index by an average of 1.67% on average. Studies from 2008-2012 also found that the majority of active managers failed to outperform their benchmarks across various market categories. While markets have historically delivered positive returns, it is typically a small group of top-performing stocks that drive those returns, making it difficult for managers to consistently pick winners. Diversification can help reduce risk and volatility compared to investing only in stocks, as seen during the 1973-1976 and 2007-2011 periods where a diversified portfolio lost less than a pure stock portfolio.
The document provides an overview and analysis of financial markets in 2009. It discusses the economic turmoil affecting markets, outlines different types of market declines, and analyzes stock and bond returns over time. The document emphasizes maintaining realistic expectations, the benefits of long-term investing, and risks of trying to time the market.
This document provides guidance on pursuing a better investment experience. It recommends embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for you long-term, considering drivers of returns like value and profitability, practicing smart diversification globally, avoiding market timing, managing emotions, ignoring entertainment over advice, and focusing on controllable factors like a personalized financial plan.
A look at how we got into this mess of a financial meltdown, what to do in the midst of it, and how to capitalize going forward. This presentation illustrates the need of hiring a professional advisor to help you manage your emotions during times of uncertainty.
This document provides information about Lord Abbett, an investment management firm, and discusses market volatility and long-term investing. It summarizes Lord Abbett's focus on stewardship and managing money for clients. It also shows that while markets fluctuate in the short-term, stocks have historically outperformed other asset classes over the long-term. The document urges investors to maintain a long-term focus despite short-term volatility.
1) The document discusses market volatility over the past 10 years and how it has caused investors to make emotional decisions that can adversely impact long-term investment performance.
2) It analyzes periods like the technology bubble of 1998-1999, the market crash from 2000-2002, and the rebound from 2003-2007.
3) It emphasizes that the market rarely moves in a straight line and that successful investing requires maintaining a long-term focus despite short-term fluctuations and emotional reactions.
This document provides guidance on pursuing a better investment experience. It recommends embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for you long-term, considering drivers of returns like company size and profitability, practicing smart diversification globally, avoiding market timing, managing emotions, focusing on long-term advice over entertainment, and controlling what you can like having a tailored plan.
The investment philosophy focuses on efficient market investing through portfolio design and implementation that targets dimensions of higher expected returns like value, size, and profitability. It believes prices reflect all available information and aims to add value not by forecasting but by pursuing risk premia in a low-cost, diversified portfolio. Traditional active management often relies on forecasting and generates higher costs without consistent outperformance, while index funds provide little flexibility.
This document discusses pursuing a better investment experience by embracing principles such as embracing market pricing, not trying to outguess the market, resisting chasing past performance, letting markets work for investors, considering drivers of returns, practicing smart diversification, avoiding market timing, managing emotions, not confusing entertainment with advice, and focusing on what can be controlled. The key ideas are that following basic principles of prudent investing over long periods can help investors achieve better results than trying to beat the market through tactics like stock picking, market timing, or chasing past performance.
The document provides steps for learning to invest with confidence. It outlines 5 steps: 1) start with your goals, 2) develop a diversified investment program, 3) understand your risk tolerance, 4) give your investments time to grow, and 5) let your progress build on itself through reinvestment. The document emphasizes the importance of diversification, asset allocation based on risk tolerance, maintaining a long-term perspective, and working with financial experts for guidance.
The document discusses diversifying investments across different asset classes like stocks and bonds. It provides tables showing annual returns for various stock and bond market indices from 1993-2007 to illustrate the benefits of diversification and staying invested for the long-term. Key messages are to diversify your portfolio, keep a long-term focus, understand how markets have recovered from past crises, and maintain investments through changing market conditions.
Design, build, protect with Capital AssociatesMitch Katz
This document discusses Loring Ward's approach to financial planning and investment management. It outlines their three-step process of designing a tailored plan to meet clients' goals, building portfolios using academic research, and protecting plans by providing guidance. It promotes diversifying globally and incorporating small and value stocks. Charts show long-term stock market growth and benefits of rebalancing. The goal is helping clients achieve financial security and stay on track to reach their "someday."
This document provides a summary of the global market performance in the second quarter of 2017. It discusses the returns of various stock and bond asset classes in the US, international developed markets, and emerging markets. The US stock market posted modest gains while international developed and emerging markets outperformed. Broad market indices in non-US markets and emerging markets recorded similar returns. The value effect was generally negative across all markets. The document also provides country-level performance for selected developed and emerging markets.
New perspectives on asset class investingRobUgiansky
This document discusses various investment strategies including active and passive investing. It notes that most active managers underperform their benchmarks over time. It also discusses the benefits of asset class investing over index investing, including lower costs, improved tax efficiency, increased diversification, better risk exposure, and potentially better long-term performance. Charts show that a diversified portfolio following an asset class approach outperformed the S&P 500 since 2000 and was less volatile, and held up better in the face of withdrawals.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
3. The stock market has been choppy Monthly stock market returns June 2007–June 2008 Source: Standard & Poor’s. Stocks are represented by the S&P 500 Index, an unmanaged index of common stock performance. You cannot invest directly in an index. Past performance does not guarantee future results. June 2008 June 2007
6. When stocks were choppy, bonds were often stable U.S. stocks U.S. bonds Data is as of 12/31/07 and is historical. Past performance does not guarantee future results. Stocks are represented by the S&P 500 Index, which is an unmanaged index of common stock performance. Bonds are represented by the Lehman Aggregate Bond Index, an unmanaged index of U.S. investment-grade fixed-income securities. It is not possible to invest directly in an index. Annual market results (%)
7. Adding bonds can reduce volatility Data is from 12/31/97 to 12/31/07 and is based on the S&P 500 Index, an unmanaged index of common stock performance, and the Lehman Aggregate Bond Index, an unmanaged index of U.S. investment-grade fixed-income securities. Past performance does not guarantee future results. You cannot invest directly in an index. 100% stocks 75% stocks/ 25% bonds 25% stocks/ 75% bonds 100% bonds Portfolio performance, 1997–2007 Volatility Return
9. Cash has barely kept pace with inflation Source: Ibbotson Associates, 2008, measuring the period 1926-2007. Returns are annualized and assume a historical average inflation rate of 3%. Stocks are represented by the S&P 500 Total Return Index. Bonds are represented by the Long-Term Government Bond Total Return Index. Cash is represented by the U.S. Treasury Bill Index. All indexes are unmanaged and measure common sectors of the stock and bond indexes. You cannot invest directly in an index. Past performance is not indicative of future results. Cash Bonds Stocks Returns for asset classes 1926–2007 3.7% 5.5% 10.4% 0.7% 2.5% 7.4% Returns after inflation
10. Investors who shifted in and out of the market have suffered Source: DALBAR, Quantitative Analysis of Investor Behavior , 2008. Study is based on data as of 12/31/07, the most current available. The average equity fund investor’s portfolio is composed of 95% domestic equity and 5% domestic fixed-income holdings. Past performance does not guarantee future results. There are no guarantees that prior markets will be duplicated. The S&P 500 Index is an unmanaged index of common stock performance. It is not possible to invest directly in an index. 11.8% 4.5% 20-year annualized returns 1987–2007 Average equity fund investor holding various funds for just over 3 years Buy and hold 20-year investment in the S&P 500
11. Missing even a few of the market’s best days can hurt Data is historical. Past performance is not a guarantee of future results. The best time to invest assumes shares are bought when market prices are low. The Dow Jones Industrial Average is an unmanaged index of common stock performance. Indexes assume reinvestment of all distributions and do not have a sales charge. It is not possible to invest directly in an index. The securities in the Putnam funds will differ from those in the index, and the funds’ performance will differ. Investing $10,000 in the Dow Jones Industrial Average 25-year period, 6/30/83–6/30/08 If you stayed fully invested for 25 years If you missed the market’s 10 best days If you missed the market’s 20 best days
13. Diversify to own more of each year’s winners Past performance does not indicate future results. Indexes are unmanaged and show broad market performance. It is not possible to invest directly in an index. Highest return Lowest return Changes in market performance, 1987–2007 2007 2002 1997 1992 1987 U.S. Large-Cap Value Stocks | Russell 1000 Value Index Cash | Merrill Lynch 91-day T-Bill Index U.S. Small-Cap Value Stocks | Russell 2000 Value Index U.S. Bonds | Lehman Aggregate Bond Index U.S. Large-Cap Growth Stocks | Russell 1000 Growth Index International stocks | MSCI EAFE Index U.S. Small-Cap Growth Stocks | Russell 2000 Growth Index
14.
15. Diversify to own fewer of each year’s losers Average annual total return on $10,000, 1987–2007 Chasing the winners Investing in last year’s best -performing asset class Investing with the losers Investing in last year’s worst -performing asset class Asset allocation Investing consistently across several asset classes Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio. Past performance does not guarantee future results.
17. The storm has always passed Markets are represented by the S&P 500 Index. Data is as of 6/30/08, is historical, and reflects reinvested dividends. Each bull or bear market is determined by at least four consecutive months of continuous gain or decline. Past performance does not guarantee future results. There are no guarantees that prior markets will be duplicated. The S&P 500 Index is an unmanaged index of common stock performance. It is not possible to invest directly in an index. Bull market Bear market June 2008 January 1973
18. Markets have always recovered from crisis U.S. invades Iraq September 11 Terrorist Attacks Russian Ruble Devaluation Long-Term Capital Management Collapse World Trade Center Bombing Gulf War Ultimatum Gorbachev Coup Invasion of Panama Financial Panic of 1987 U.S. Invades Grenada U.S.S.R. in Afghanistann Nixon Resigns U.S. Bombs Cambodia John F. Kennedy Assassination Cuban Missile Crisis Eisenhower Heart Attack Korean War Pearl Harbor Fall of France 12/31/07 12/31/40 Graph is plotted on a logarithmic scale so that comparable percentage changes appear similar and represents a hypothetical $10,000 investment in the S&P 500 Index, an unmanaged index of common stock performance. You cannot invest directly in an index. Indexes do not have sales charges and do not represent the performance of any Putnam fund or product. Past performance does not indicate future results and prior markets may not be duplicated. Growth of $10,000 in the S&P 500 Index December 1940–December 2007 $19,276,429 $10,000
19. Markets have not been rocked by elections Annual returns of S&P 500 Index during presidential election years Source: Standard & Poor's, 2008. * 2008 figure is YTD through August 31, 2008. 2008 * 2004 2000 1996 1992 1988 1984 1980 1976 1972 -11.39% +10.88 -9.10 +22.96 +7.62 +16.61 +6.27 +32.50 +23.93 +18.99
20. Stocks are attractively priced today Price to normal earnings ratio of the U.S. stock market * * As measured by the S&P 500 Index. 2008 data as of 6/30/08. 1998 35.1 2008 18.6
21. Bond yields are higher today Data is as of 6/30/03 and 6/30/08, respectively, is historical, and reflects yield to maturity. Mortgage bonds are represented by the Lehman GNMA Index. Corporate bonds are represented by the Lehman U.S. Credit Index, and global bonds are represented by the Lehman Global Aggregate Index. It is not possible to invest directly in an index. Past performance does not guarantee future results. 6.06% 4.02% Corporate bonds (investment grade) 4.56% 2.97% Global bonds 5.62% 4.31% Mortgage bonds 2008 2003
22. Municipal bond yields are unusually high As of June 30, 2008. Past performance is not indicative of future results. Based on the 10-year-on-the-run (most recently issued) AAA non-callable municipal bond versus the 10-year-on-the-run Treasury bond. Unlike municipal bonds, income from Treasury bonds is subject to federal taxes. Sources: MMD, Putnam Investments. Municipal bond yields as a percent of Treasury bond yields Equal to U.S. Treasury bond yields June 2008 June 1998
23. International markets offer attractive opportunities * Source: International Monetary Fund, World Economic Outlook Database, April 2008. ** Data is based on the Morgan Stanley Capital International (MSCI) World Index, an unmanaged index of equity securities from developed countries, as of 12/31/07. It is not possible to invest directly in an index. Past performance is not indicative of future results. There are no guarantees that prior markets will be duplicated. Faster growth 176 economies are growing faster than the U.S.* Abundant choices Globally, 68% of stocks are outside the U.S.** World-leading companies Toyota – Japan Nestl é – Switzerland Bayer – Germany
24. Put more wind in your sails Data is as of 12/31/07 and is historical. Past performance does not guarantee future results. There are no guarantees that prior markets will be duplicated. The S&P 500 Index is an unmanaged index of common stock performance. MSCI EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. It is not possible to invest directly in an index. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. 11.17 21.59 8.66% International stocks 12.83 5 years 5.49 1 year 5.91% 10 years U.S. stocks Performance as of 12/31/07
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28. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus before investing. Putnam Retail Management www.putnam.com EO077 252783 9/08